The mediation role of organizational strategy orientation on the effect of environmental uncertainty on the performance of travel agency companies

ABSTRACT

The global pandemic has had a significant impact on the economic sector and the tourism sector and its supporting businesses, where many market segments of the tourism industry, such as hotels, restaurants, and travel agents, have reached a saturation point. Companies need to determine a clear strategy in the face of a dynamic change in the business environment to achieve the expected performance and maintain a sustainable competitive advantage. The discussion of strategies also focuses on the discussion on the strategic orientation of the organization. Research on the orientation of organizational strategies in the tourism industry, especially in the travel agent sector, has yet to be widely studied in depth, and how the impact of the pandemic on the sustainability of the performance of travel agent companies. This paper aims to examine the mediation role of the organization's strategic orientation on the influence of environmental uncertainty on the performance of travel agency companies. The respondents in this study were the manager of a travel agency company throughout Indonesia and we used a purposive sampling technique with a sample of 75 respondents. The method of collecting data is using a questionnaire and then the data is analyzed using PLS-SEM. The results showed that Technology Uncertainty affects Market Orientation & Entrepreneurial Orientation, but only Entrepreneurial Orientation affects performance. It also showed that Market Orientation and Entrepreneurial Orientation fully mediate the Technology Uncertainty variable with Organizational Performance. Therefore, travel agent companies must be adaptive and innovative in facing technological changes that occur through the choice of organizational strategy orientation, Entrepreneurial Orientation and Market Orientation to encourage performance improvement.